Limited Calendar, But Less Limited Than Last Week

Last week was notable for its absence of any notable developments--an outcome we considered to be the "guilty until proven innocent" baseline and the reason we referred to the past 11 days as an 11 day weekend.  As the new, holiday-shortened week gets underway, bonds have yet to break outside the range boundaries from the 11 day weekend, but at the very least, there is more data on tap.  In addition to Treasury auctions through Thursday, there is also a smattering of economic reports.  We're already seeing some reaction to this morning's Consumer Confidence and 2yr Treasury auction, but the headliner in terms of potential volatility is Friday's PCE inflation data.